The Center to Combat Corruption and Cronyism (C4) today said it was “outraged” by allegations in a Bloomberg report claiming that a loose network of businessmen would purchase shares in locally owned companies before intimidating executives – with the help of MACC officials – and forcing them out.
The Bloomberg report alleged that these intimidation tactics involved MACC officers who investigated executives of targeted companies, and listed a series of purported intimidation “services” carried out by MACC’s Section D – the unit in charge of investigating listed companies, market-related corruption, and insider trading.
The alleged services ranged from raids on company offices to pressuring executives to sell their shares, and even recommending charges to public prosecutors. It was claimed that each “service” came with a price tag, with some allegedly reaching millions of ringgit.
The report also claimed that MACC’s involvement in the scheme extended from lower-level officers to the highest ranks of the commission.
“All involved MACC officers should be suspended with immediate effect until independent investigations are concluded, with details of Section D’s operations made transparent and publicly available,” C4 said in a statement.
“We demand that the government make immediate efforts to investigate these findings and reform the MACC.”
C4 said it was troubling that such allegations, which implicate MACC officers in the direct abuse of its far-reaching enforcement powers, had surfaced.
The anti-graft group noted that MACC wields extensive powers, including the authority to initiate investigations, examine witnesses, conduct raids and searches (at times without a warrant), seize assets, and arrest individuals suspected of offences.
It also noted that MACC officers may arrest, detain and question suspects for prolonged periods, and recommend prosecutions to the Attorney-General’s Chambers (AGC).
“An agency empowered to raid offices, freeze assets, and recommend criminal charges is immensely dangerous without effective checks,” it said.
“Such powers risk being weaponised, whether for political ends or private gain. Such sweeping authority demands equally robust safeguards.
“In this light, calls for reform are not merely about safeguarding the commission’s independence, but about ensuring MACC has an effective accountability framework.”
Bloomberg reported that neither MACC nor Wong Yun Fui, the former Section D head, had responded to questions about Section D.
In a statement, MACC rejected claims that its investigations were influenced by private interests, dismissing allegations made in the Bloomberg report as baseless.
The anti-graft agency said all probes are conducted strictly in accordance with the law, guided by evidence, and carried out independently without fear or favour.
It added that decisions on prosecution fell under the AGC and the courts, in line with the principle of separation of powers.